USDC

CointestMod

#USDC Con-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is USD coin (USDC)?** > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > Uses of USD coin: > • Avoid inflation in countries with weak economies > • Send money around the world without large fees, securely and instantly > • Short other coins without having to convert to fiat > • Buys things in crypto based apps and websites > > > **Cons of USD coin** : > • Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount > > • Although USD coin can be use in some DeFi apps and games, there are very few day-to-day uses for USDC – there is almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability > > • Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger > > • Another issue that may put people off from USD coin is that it is centralised – it is governed by Circle, so it the reserves cannot be verified, unlike decentralised options like DAI and SameUSD > > • Although transferrin USD coin is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less > > • Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal > > \*”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself\* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by I-play-too-much-PUBG which won 3rd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > USDC is the best stablecoin and here is why. > > > > > > > 1. USDC is transparent. Nothing is hidden in USDC due to its publicly verifiable attestations. This means it is much harder for criminal activity such as money laundering to occur. > > > > > 2. USDC is safe. USDC is backed by (debatably) the strongest economy in the world unlike some other stablecoins such as BUSD or DAI. USDC is only truly comparable to other US dollar backed coins such as USDT. > > > > > With that argument someone might say that USDT is also backed by the US dollar. With that, I follow with another argument. > > > > > 3. Due to the transparency and security of USDC, there is little to no “fairy money” or creation of cryptocurrency without being backed by anything. This is the strongest reason why USDC is superior to USDT. > > > > > > > 4. Although USDC is backed by the US dollar (centralized) it actually supports defi. USDC is an ERC-20 based token therefore it can be used by any dApp built on the ethereum network. > > > > > > In conclusion, USDT is currently used more and has a higher market cap than USDC, but USDC has stronger infrastructure and is more likely to be used largely in the future due to it being in support of defi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

MaeronTargaryen

They’ve just lost the amount that they gained when they forced their users to use it instead of USDC. Stablecoins gain and lose MC on each other all the time, it’s not a big deal

Elean0rZ

Right, exactly: You could do it, but you'd be limited to the retailers that accept crypto, either directly or via payment processors. Considering you can buy from Amazon via a payment processor, I'd argue that you could get all the basic necessities without the need to convert to Fiat. Platforms like Coinsfer (and others) allow most bills etc to be paid with crypto, further expanding what you can do. Re: the "genuinely don't need to worry about on/off ramps", they genuinely don't need to worry about ON ramps full-stop because they already have assets in the cryptospace, and they genuinely don't NEED to worry about off ramps if they prefer to live with the limitations noted above--but they could, of course, choose to offramp Fiat if they wished, and many presumably do. I don't think I've ever suggested that someone wouldn't ALSO need/want Fiat to function, nor do I believe that to be the subject of the conversation. 99.9% of people with significant crypto holdings also have day jobs in the "real world"; that is, they have sources of Fiat with which they could theoretically cover the expenses that absolutely can't be handled any other way. Taxation, as you say, is probably the thorniest issue here (though of course many places in the world don't levy taxes on crypto-crypto transactions, and the issue is less thorny there). >so I exchange my BTC for USDC through a defi bridge, but to use that in the real world, I need to cash out that USDC into USD. Payment processors give you plenty of options to use those USDC without cashing out. But my point about stablecoins specifically was if you (say) wanted to peg your assets to Fiat for the purposes of riding out a crypto bear market or something. You don't need to ACTUALLY cash out of crypto to cash out of crypto volatility. >What’s the point of having a bunch of money if you can’t buy anything nice with it lol I agree and honestly we're getting into the weeds here, because if I were in that position I would for sure cash out, pay my taxes, and go and buy a private island or whatever. The only point I've been arguing here is that \*IF\* someone cared more about the principle of the thing than anything else, like if their desire to fuck The Man outweighed any other considerations, then they could probably pull it off without recourse to on/off ramps. My original comment specifically contrasted the idealistic crypto maximalist perspective with the reality that actually applies to most people. For most people, yeah, you absolutely want and need on/off ramps.

uwu2420

Wait, so you agree that not many places accept crypto directly, how would I operate without cashing out? I have yet to see a physical storefront take crypto in my area, so I’d be at best limited to the places I can buy gift cards for (which isn’t really that many nor practical, and are often bought with stolen credit cards). I’d basically be limited to the handful of online retailers that take crypto. Remember your comment is that people who got in early “genuinely don’t need to worry about on/off ramps”. My mortgage is paid with dollars, my utilities are paid with dollars, gasoline is paid for with dollars, and even if I live in one of the few places that allows for state taxes to be paid with Bitcoin, federal taxes are paid for in dollars. Those in school will have student loans or tuition that needs to be paid in dollars, and those with a company will have to pay their employees in dollars. Those are all day to day needs that as far as I know there aren’t gift card alternatives for. > USDC Okay, so I exchange my BTC for USDC through a defi bridge, but to use that in the real world, I need to cash out that USDC into USD. > taxes provided they are careful What’s the point of having a bunch of money if you can’t buy anything nice with it lol

Roy_Playz

Don't have a ton of Algo, but it really has let me down. Not to mention the price being so abysmal compared to when i bought it. ATOM is also down for me, and I don't interact with it enough. The only other chain I use now other than BTC is Polygon. Using ETH or USDC via Matic is so smooth not to mention CHEAP. Has a much better future IMO.

maynardstaint

Use case is super important. No crypto will last long term without a reason to invest in it. Other than “it’s here!” But I chase partnerships. Hbar and $dag have an agreement with the US army. Unlimited funds there. Algorand has an agreement with Italian government. Almost unlimited funding there. Xrp has agreement with 130 major banks on over 80 countries. Xdc. Circle is backed by Goldman Sachs, and has multiple stable coins being released. As well as being the parent company of USDC. Use case, plus global Partnership = $$$$. In my opinion. “Trust me bro!” Lol.

CointestMod

#USDC Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post from 1 month ago written by me [https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto\_8\_september\_8\_2021\_usd\_coin\_usdc/](https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto_8_september_8_2021_usd_coin_usdc/) > > # What is it? > > USD Coin is a stable coin, which is a cryptocurrency that has the same value as a classic currency, in this case the US dollar. It is a similar project, in several ways, to other stable coins. It is also the stable coin managed directly by the Coinbase and Coinbase PRO exchanges, one of the most important exchanges in the world. USD Coin, as it should be more than clear from the name, is pegged to the dollar. What does this mean? It means that the value of a USDC token will always be equal to the value of one dollar. We will always be able to convert (we will see the special cases later) a token of this type into dollars. As we can then see on the main markets that change it, the price can fluctuate very slightly with respect to that of the dollar, generally in the order of thousandths of a percentage. These are very small variations that are mostly dependent on the small inefficiencies that can be created on the market. Perhaps one of the best qualities of USDC is that it is controlled by a consortium, in which partecipate several players in the cryptocurrency industry. It was in fact founded by Circle, and today also hosts the popular Coinbase exchange, and the mining company Bitmain, which is one of the largest investors in Circle. An internal project? No. A project that today has behind it the most serious groups circulating in the world of cryptocurrencies. > > > # How does it work? > > Like all stable coins, USD Coin also has as its main use to act as a counter value on high-frequency exchanges, obviously being tokenized. Therefore, its first use is to act as a counterparty in the negotiations that take place within the main exchanges. Coinbase aims to use it as a means of payment, offering free wallets and above all the possibility for everyone to exchange a crypto with a stable value expressed in dollars without the delays and costs that are instead connected to classic banking. USD Coin is a ERC-20 token, which is a token that is compatible with the Ethereum blockchain. A choice of this type has proved to be a winning one over time because the Ethereum network today offers reliability and allows this stable token, USDC, to be used in many decentralized finance projects. USDC is not mined, that means it is not created by solving very complicated algorithmic calculations. In fact this product is issued on demand. Anyone who buys USDC from Coinbase will have new ones delivered and never released. The doubt in this case is that Coinbase, as well as the other agents involved in the project, can issue more money than they will actually be able to convert one day. This problem can be overcome, provided that the exchange actually has US dollars or equivalent in cash. > > > # Where to store it? > > The best hot wallets for USD Coin are Coinbase Wallet, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. Solid backers > > 2. Useful > > 3. Future projects > > **Cons** > > 4. High competition ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > What is USD coin? > > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > > Uses of USD coin: > > • Avoid inflation in countries with weak economies > > • Send money around the world without large fees, securely and instantly > > • Short other coins without having to convert to fiat > > • Buys things in crypto based apps and websites > > Pros of USD coin: > > • USD coin has many high value and reliable partneships with large firms, that gives the project stability and credibility. These include Goldman Sachs, Bitmain and IDG Capital, and these high profile links mean USD coin can be seen as trustworthy > > • Transfers with USD coin only take roughly 15 seconds, compared to the minutes it takes for a fiat wire transfer or similar – this means it has a use case in transferring money across the globe quickly > > • The cost of money transfers remains the same no matter the size – it is the Ethereum gas fee-, and this means for high value transfers it can be cheaper than other fiat versions, which may take a percentage > > • Compared to the US Dollar, you can earn a much higher interest on the coin with decentralised apps, so is more profitable when holding than fiat currency. > > • It is backed 1 to 1 with the US dollar – one of the strongest and most reliable currencies in the world, so is also a very reliable stablecoin. > > • USD coin can be used by those who don’t have access to traditional bank account due to age or location, so can still cash out other coins into an exchange > > *”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

TheSublimeNeuroG

The stellar blockchain is excellent. Nearly instantaneous and free transactions, the mobile wallet (lobstr) gives you built-in access to the stellar DEX (and it doesn’t use KYC), and they have stellar USDC, so you can swap your XLM for stable coin without any fees. I also made a killing off some tokens native to the stellar blockchain in 2021. 10/10 would recommend

CointestMod

#USDC Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post from 1 month ago written by me [https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto\_8\_september\_8\_2021\_usd\_coin\_usdc/](https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto_8_september_8_2021_usd_coin_usdc/) > > # What is it? > > USD Coin is a stable coin, which is a cryptocurrency that has the same value as a classic currency, in this case the US dollar. It is a similar project, in several ways, to other stable coins. It is also the stable coin managed directly by the Coinbase and Coinbase PRO exchanges, one of the most important exchanges in the world. USD Coin, as it should be more than clear from the name, is pegged to the dollar. What does this mean? It means that the value of a USDC token will always be equal to the value of one dollar. We will always be able to convert (we will see the special cases later) a token of this type into dollars. As we can then see on the main markets that change it, the price can fluctuate very slightly with respect to that of the dollar, generally in the order of thousandths of a percentage. These are very small variations that are mostly dependent on the small inefficiencies that can be created on the market. Perhaps one of the best qualities of USDC is that it is controlled by a consortium, in which partecipate several players in the cryptocurrency industry. It was in fact founded by Circle, and today also hosts the popular Coinbase exchange, and the mining company Bitmain, which is one of the largest investors in Circle. An internal project? No. A project that today has behind it the most serious groups circulating in the world of cryptocurrencies. > > > # How does it work? > > Like all stable coins, USD Coin also has as its main use to act as a counter value on high-frequency exchanges, obviously being tokenized. Therefore, its first use is to act as a counterparty in the negotiations that take place within the main exchanges. Coinbase aims to use it as a means of payment, offering free wallets and above all the possibility for everyone to exchange a crypto with a stable value expressed in dollars without the delays and costs that are instead connected to classic banking. USD Coin is a ERC-20 token, which is a token that is compatible with the Ethereum blockchain. A choice of this type has proved to be a winning one over time because the Ethereum network today offers reliability and allows this stable token, USDC, to be used in many decentralized finance projects. USDC is not mined, that means it is not created by solving very complicated algorithmic calculations. In fact this product is issued on demand. Anyone who buys USDC from Coinbase will have new ones delivered and never released. The doubt in this case is that Coinbase, as well as the other agents involved in the project, can issue more money than they will actually be able to convert one day. This problem can be overcome, provided that the exchange actually has US dollars or equivalent in cash. > > > # Where to store it? > > The best hot wallets for USD Coin are Coinbase Wallet, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. Solid backers > > 2. Useful > > 3. Future projects > > **Cons** > > 4. High competition ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

SoiledCold5

Monero - it’s really simple and accepted in most places and I just love using it as currency Litecoin / Dogecoin - it’s a fast and cheap way to pay for stuff if they don’t accept Monero Stellar - I like using the tokens and DEXs like USDC. I am easily able to do everything on the chain within seconds and sell it for monero or other coins quickly

takemidown

C'mon! That's not true. Maybe 7/10. USDC and BUSD ERC20 should be 8/10.

CointestMod

#USDC Con-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is USD coin (USDC)?** > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > Uses of USD coin: > • Avoid inflation in countries with weak economies > • Send money around the world without large fees, securely and instantly > • Short other coins without having to convert to fiat > • Buys things in crypto based apps and websites > > > **Cons of USD coin** : > • Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount > > • Although USD coin can be use in some DeFi apps and games, there are very few day-to-day uses for USDC – there is almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability > > • Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger > > • Another issue that may put people off from USD coin is that it is centralised – it is governed by Circle, so it the reserves cannot be verified, unlike decentralised options like DAI and SameUSD > > • Although transferrin USD coin is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less > > • Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal > > \*”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself\* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > What is USD coin? > > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > > Uses of USD coin: > > • Avoid inflation in countries with weak economies > > • Send money around the world without large fees, securely and instantly > > • Short other coins without having to convert to fiat > > • Buys things in crypto based apps and websites > > Pros of USD coin: > > • USD coin has many high value and reliable partneships with large firms, that gives the project stability and credibility. These include Goldman Sachs, Bitmain and IDG Capital, and these high profile links mean USD coin can be seen as trustworthy > > • Transfers with USD coin only take roughly 15 seconds, compared to the minutes it takes for a fiat wire transfer or similar – this means it has a use case in transferring money across the globe quickly > > • The cost of money transfers remains the same no matter the size – it is the Ethereum gas fee-, and this means for high value transfers it can be cheaper than other fiat versions, which may take a percentage > > • Compared to the US Dollar, you can earn a much higher interest on the coin with decentralised apps, so is more profitable when holding than fiat currency. > > • It is backed 1 to 1 with the US dollar – one of the strongest and most reliable currencies in the world, so is also a very reliable stablecoin. > > • USD coin can be used by those who don’t have access to traditional bank account due to age or location, so can still cash out other coins into an exchange > > *”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

CointestMod

#Tether Con-Arguments Below is an argument written by Far-Scholar9028 which won 3rd place in the Tether Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **Tether Cons** > > **Dodgy Reserves** > > Initially, Tether asserted that each USDT was backed by a dollar in its reserves. But the truth is more nuanced, Tether is supported by a variety of: > > * Other Investments (Including Digital Tokens): 8.36% > > * Secured Loans(None To Affiliated Entities): 6.77% > > * Corporate Bonds, Funds & Precious Metals: 5.25% > > * Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper: 79.62% > > Of the 79% cash and cash equivalents, only 10.25% is held in cash. Also to be emphasized is the lack of an independent audit of the specific breakdown of Tether's reserves. > > **Regulatory Issues** > > The Paradise Papers dump in 2017 revealed that Bitfinex and Tether are both controlled by the same individuals. The Bitfinex trading platform's owners, who also manage the tether virtual currency, have participated in a cover-up to conceal the apparent loss of $850 million dollars, according to the investigation conducted by the New York state Attorney General. Later, Tether's attorney acknowledged that only 74% of the Tether is backed. Tether is forbidden from conducting business in New York under the terms of the settlement agreement. Despite paying a $18 million punishment, Bitfinex and Tether did not confess any wrongdoing. > > **Competitors** > > * USDC: Circle and Coinbase launched USDC in 2018, and it is tied 1:1 to the US dollar. Issuers are also required to back all tokens with fiat reserves and provide monthly proof of reserves in order to guarantee that USDC maintains a continual one-to-one backing. > > * BUSD: BUSD is a stablecoin backed by USD that is 1:1 secure, compliant, and supported by Binance. It was created by Paxos and has NYDFS approval. To preserve the stability and security of the stablecoin, Paxos hires an auditing company to examine its BUSD and US Dollar supply each month. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/vpuif9/top_coins_tether_conarguments_july_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#Tether Pro-Arguments Below is an argument written by Blendzi0r which won 2nd place in the Tether Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > *First published on: \[*[30.09.2021](https://np.reddit.com/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/hewpzqt/)*\]* > > *Last edited on: 19.09.2022* > > # Intro > > Tether (USDT) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDT is currently the largest stablecoin. \[1\], \[2\], \[3\] > > # Pros > > **It’s the most popular and oldest stablecoin** > > Tether was launched in 2014 as Realcoin and renamed to Tether the same year \[1\]. It’s the first successful stablecoin. For many years, it had completely dominated the stablecoins market and despite the recent growth of other stablecoins, mainly USDC, Tether is still the biggest and most popular stablecoin. As of September 2022, its market cap shrinked against USDC's market cap in recent months, but its volume still tends to be much higher (according to coinmarketcap, on 19.09.2022 it was 12x(!) higher). In fact, USDT’s trading volume is unmatched by any other cryptocurrency. \[1\] > > It is also worth pointing out that more than 80% of stablecoins launched in 2015 are now gone and USDT is still here, despite its bad press. \[4\] > > **It has most trading pairs** > > The market cap and volume speak for themselves – Tether is the most popular stablecoin. There are very few exchanges that don’t accept USDT and all major coins have trading pairs with USDT. Even Coinbase, which is responsible for Tether’s rival stablecoin – USDC, lists Tether on its exchange (since May 2021). \[5\] > > It is also backed by several international currencies and, therefore, allows people in different countries purchase coins that they otherwise wouldn’t be able to get. > > **It was declared dead many times but, just like Bitcoin, it's alive and kicking** > > There are many controversies around Tether. Perhaps the most concerning one is whether USDT has its reserves fully backed. Many critics believe that Tether isn’t fully backed and if many investors were to redeem tethers at the same time, there would be no liquidity \[6\]. Situations when people redeem tokens en masse usually should happen during market crashes. In the last 4 years we had three significant market crashes – in 2018, in March 2020 and in May 2021. USDT survived all of them. > > It has also survived losing almost 25% of its market cap in a short time - from May to July of this year. > > **The latest breakdowns of the reserves is a step in the right direction** > > Tether had been criticized for lack of transparency (and rightly so) for many years. In May 2021, for the first time since 2014, Tether finally gave us an insight into their reserves. The first report was rather disappointing as it turned out that barely 3% of the reserves are made-up by cash. Moreover, 65% of the reserves were made-up by commercial paper and there were no details about the type of the commercial paper. \[7\] > > However, the reports from August and December 2021 looked much better \[8\]: cash and cash equivalents made up more than 80% of the reserves, more than 10% of which were cash and bank deposits, +/- 30% were treasure bills (they are considered very safe assets) and they provided more details – the reports included information about the rating and breakdown of maturity of the commercial paper and certificates of deposit. The reports were on pair with those of USDC. > > **USDT is centralized. But is it so bad in the case of a stablecoin?** > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So is decentralization that important in the case of a stablecoin? > > The fact that USDT is centralized also allowed it to do good things on many occasions. It returned USDT sent to wrong addresses and cooperated with law enforcement officials and blocked/froze addresses that used USDT for illegal activities. \[9\], \[10\] > > ^(Sources:) > > ^(\[01\]) [^(https://en.wikipedia.org/wiki/Tether/(cryptocurrency)](https://en.wikipedia.org/wiki/Tether/(cryptocurrency)) > > ^(\[02\]) [^(https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf)](https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf) > > ^(\[03\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[04\])[^(https://papers.ssrn.com/sol3/papers.cfm?abstract\\\\id=3835219)](https://papers.ssrn.com/sol3/papers.cfm?abstract\id=3835219) > > ^(\[05\]) [^(https://blog.coinbase.com/tether-usdt-is-now-available-on-coinbase-214f075deaa2)](https://blog.coinbase.com/tether-usdt-is-now-available-on-coinbase-214f075deaa2) > > ^(\[06\]) [^(https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin)](https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin) > > ^(\[07\]) [^(https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf)](https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf) > > ^(\[08\]) [^(https://tether.to/en/transparency/#reports)](https://tether.to/en/transparency/#reports) > > ^(\[09\]) [^(https://decrypt.co/41920/tether-uses-centralized-power-refund-million-usdt)](https://decrypt.co/41920/tether-uses-centralized-power-refund-million-usdt) > > ^(\[10\]) [^(https://cryptopotato.com/tether-freezes-1-7m-in-usdt-stolen-in-yearn-finance-exploit/)](https://cryptopotato.com/tether-freezes-1-7m-in-usdt-stolen-in-yearn-finance-exploit/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/vpuiec/top_coins_tether_proarguments_july_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find arguments on this topic in other rounds.

CointestMod

#USDC Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post from 1 month ago written by me [https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto\_8\_september\_8\_2021\_usd\_coin\_usdc/](https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto_8_september_8_2021_usd_coin_usdc/) > > # What is it? > > USD Coin is a stable coin, which is a cryptocurrency that has the same value as a classic currency, in this case the US dollar. It is a similar project, in several ways, to other stable coins. It is also the stable coin managed directly by the Coinbase and Coinbase PRO exchanges, one of the most important exchanges in the world. USD Coin, as it should be more than clear from the name, is pegged to the dollar. What does this mean? It means that the value of a USDC token will always be equal to the value of one dollar. We will always be able to convert (we will see the special cases later) a token of this type into dollars. As we can then see on the main markets that change it, the price can fluctuate very slightly with respect to that of the dollar, generally in the order of thousandths of a percentage. These are very small variations that are mostly dependent on the small inefficiencies that can be created on the market. Perhaps one of the best qualities of USDC is that it is controlled by a consortium, in which partecipate several players in the cryptocurrency industry. It was in fact founded by Circle, and today also hosts the popular Coinbase exchange, and the mining company Bitmain, which is one of the largest investors in Circle. An internal project? No. A project that today has behind it the most serious groups circulating in the world of cryptocurrencies. > > > # How does it work? > > Like all stable coins, USD Coin also has as its main use to act as a counter value on high-frequency exchanges, obviously being tokenized. Therefore, its first use is to act as a counterparty in the negotiations that take place within the main exchanges. Coinbase aims to use it as a means of payment, offering free wallets and above all the possibility for everyone to exchange a crypto with a stable value expressed in dollars without the delays and costs that are instead connected to classic banking. USD Coin is a ERC-20 token, which is a token that is compatible with the Ethereum blockchain. A choice of this type has proved to be a winning one over time because the Ethereum network today offers reliability and allows this stable token, USDC, to be used in many decentralized finance projects. USDC is not mined, that means it is not created by solving very complicated algorithmic calculations. In fact this product is issued on demand. Anyone who buys USDC from Coinbase will have new ones delivered and never released. The doubt in this case is that Coinbase, as well as the other agents involved in the project, can issue more money than they will actually be able to convert one day. This problem can be overcome, provided that the exchange actually has US dollars or equivalent in cash. > > > # Where to store it? > > The best hot wallets for USD Coin are Coinbase Wallet, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. Solid backers > > 2. Useful > > 3. Future projects > > **Cons** > > 4. High competition ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

CointestMod

#CBDC Con-Arguments Below is an argument written by noxtrifle which won 1st place in the CBDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > CBDCs are not much different from cryptocurrencies, and are digital, governmentally-issued tokens that are pegged to the value of the specific currency. Think of them like USDT or USDC, but highly regulated and centralized. This is why CBDCs have several flaws, including: > > * **Possible ban of cryptocurrencies** > * As a country implements its own CBDC, it is possible that they will simultaneously ban cryptocurrencies as an alternative means of payment, meaning that residents may be locked into using the CBDC, and nothing else. > * **Lack of privacy** > * CBDCs are fully trackable (and controllable) by the country's government, which raises concerns for users' privacy and financial autonomy. If a more authoritarian government was involved, the chances exist that the government uses citizens' personal data for malicious purposes. Even the notion that their transactions are directly trackable by the government may deter many from using CBDCs at all, diminishing their practicality if not all will use it. > * The UK's [House of Lords](https://www.omfif.org/2022/01/uk-parliament-reluctant-to-embrace-retail-cbdc/) and [US Senators](https://www.cruz.senate.gov/newsroom/press-releases/sen-cruz-introduces-legislation-prohibiting-unilateral-fed-control-of-a-us-digital-currency) Chuck Grassley, Ted Cruz, and Mike Braun also see privacy as a major concern for CBDCs, even though both countries do not have any definite, immediate plans to launch a CBDC. > * This could also give birth to a system where governments can restrict individuals' or companies' access to the monetary system for any dissent against the government, and combining CBDCs with something like China's social credit system would worsen the already-severe privacy issues in certain countries. > * **Centralisation** > * As opposed to cryptocurrencies, which in most cases are decentralized, CBDCs in their current form are fully controlled by the government or central bank. > * Without decentralization, CBDCs bring back into question many of the problems that cryptocurrencies seek to solve: including double-spending, hackers, and malicious actors. > * Data breaches are also a severe issue: unlike in the cryptocurrency space where a hacker can only gain access to one's funds, with CBDCs they can steal numerous other sensitive details including one's bank details, address, and identity as they will all likely be linked to one's CBDC account. > * **Monetary Policy Concerns** > * While CBDCs will allow governments to collect taxes and track expenditure with ease, they are also a dangerous tool in times of economic concern. > * Take the present day, for instance. Instead of raising the cash rate to decrease expenditure, governments could easily diminish citizens' accounts by a certain amount or vice versa, likely leading to rapid deflation or inflation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl0x/general_concepts_cbdc_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_CBDC) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

Jenkins_Leeroy

Coinbase card seems to check all of your boxes That's what I've been using and getting 4% XLM back on all of my purchases using USDC It's great

AberdreamGaming

Ronin network: Good wallet, Cheap transactions, Quick transactions, Easy staking, Easy NFT marketplace - easy to buy/sell/auction Axies. There's also a bridge to bring ETH/USDC to the network There's also a central location to swap between native assets.

CointestMod

#USDC Con-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is USD coin (USDC)?** > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > Uses of USD coin: > • Avoid inflation in countries with weak economies > • Send money around the world without large fees, securely and instantly > • Short other coins without having to convert to fiat > • Buys things in crypto based apps and websites > > > **Cons of USD coin** : > • Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount > > • Although USD coin can be use in some DeFi apps and games, there are very few day-to-day uses for USDC – there is almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability > > • Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger > > • Another issue that may put people off from USD coin is that it is centralised – it is governed by Circle, so it the reserves cannot be verified, unlike decentralised options like DAI and SameUSD > > • Although transferrin USD coin is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less > > • Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal > > \*”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself\* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

HorridUnknown

“Using” a blockchain refers to making a trade in your wallet? Like trading ETH for USDC would be “using” the ETH blockchain, correct? Or am I way off?

CointestMod

#USDC Con-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is USD coin (USDC)?** > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > Uses of USD coin: > • Avoid inflation in countries with weak economies > • Send money around the world without large fees, securely and instantly > • Short other coins without having to convert to fiat > • Buys things in crypto based apps and websites > > > **Cons of USD coin** : > • Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount > > • Although USD coin can be use in some DeFi apps and games, there are very few day-to-day uses for USDC – there is almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability > > • Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger > > • Another issue that may put people off from USD coin is that it is centralised – it is governed by Circle, so it the reserves cannot be verified, unlike decentralised options like DAI and SameUSD > > • Although transferrin USD coin is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less > > • Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal > > \*”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself\* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > What is USD coin? > > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > > Uses of USD coin: > > • Avoid inflation in countries with weak economies > > • Send money around the world without large fees, securely and instantly > > • Short other coins without having to convert to fiat > > • Buys things in crypto based apps and websites > > Pros of USD coin: > > • USD coin has many high value and reliable partneships with large firms, that gives the project stability and credibility. These include Goldman Sachs, Bitmain and IDG Capital, and these high profile links mean USD coin can be seen as trustworthy > > • Transfers with USD coin only take roughly 15 seconds, compared to the minutes it takes for a fiat wire transfer or similar – this means it has a use case in transferring money across the globe quickly > > • The cost of money transfers remains the same no matter the size – it is the Ethereum gas fee-, and this means for high value transfers it can be cheaper than other fiat versions, which may take a percentage > > • Compared to the US Dollar, you can earn a much higher interest on the coin with decentralised apps, so is more profitable when holding than fiat currency. > > • It is backed 1 to 1 with the US dollar – one of the strongest and most reliable currencies in the world, so is also a very reliable stablecoin. > > • USD coin can be used by those who don’t have access to traditional bank account due to age or location, so can still cash out other coins into an exchange > > *”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

LieutenantZucc

I’ll try to suggest something that hasn’t been mentioned yet that is relatively safe. GLP is an index of a few crypto assets on the Arbitrum or Avalanche network (I recommend Arbitrum for better liquidity and no exposure to AVAX). Basically GLP acts as the liquidity provider to traders on GMX, a decentralized perpetuals exchange. On Arbitrum, GLP consists of 35% ETH, 15% WBTC, 48% stables (USDC, USDT, etc) and a tiny bit of UNI and LINK. If you want to stay relatively safe and risk off, it allows you to gain exposure to half the price action of ETH and BTC. Additionally, holding GLP allows you to receive 70% of the fees the GMX platform generates from margin trading, swaps, liquidations, etc.

CointestMod

#USDC Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post from 1 month ago written by me [https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto\_8\_september\_8\_2021\_usd\_coin\_usdc/](https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto_8_september_8_2021_usd_coin_usdc/) > > # What is it? > > USD Coin is a stable coin, which is a cryptocurrency that has the same value as a classic currency, in this case the US dollar. It is a similar project, in several ways, to other stable coins. It is also the stable coin managed directly by the Coinbase and Coinbase PRO exchanges, one of the most important exchanges in the world. USD Coin, as it should be more than clear from the name, is pegged to the dollar. What does this mean? It means that the value of a USDC token will always be equal to the value of one dollar. We will always be able to convert (we will see the special cases later) a token of this type into dollars. As we can then see on the main markets that change it, the price can fluctuate very slightly with respect to that of the dollar, generally in the order of thousandths of a percentage. These are very small variations that are mostly dependent on the small inefficiencies that can be created on the market. Perhaps one of the best qualities of USDC is that it is controlled by a consortium, in which partecipate several players in the cryptocurrency industry. It was in fact founded by Circle, and today also hosts the popular Coinbase exchange, and the mining company Bitmain, which is one of the largest investors in Circle. An internal project? No. A project that today has behind it the most serious groups circulating in the world of cryptocurrencies. > > > # How does it work? > > Like all stable coins, USD Coin also has as its main use to act as a counter value on high-frequency exchanges, obviously being tokenized. Therefore, its first use is to act as a counterparty in the negotiations that take place within the main exchanges. Coinbase aims to use it as a means of payment, offering free wallets and above all the possibility for everyone to exchange a crypto with a stable value expressed in dollars without the delays and costs that are instead connected to classic banking. USD Coin is a ERC-20 token, which is a token that is compatible with the Ethereum blockchain. A choice of this type has proved to be a winning one over time because the Ethereum network today offers reliability and allows this stable token, USDC, to be used in many decentralized finance projects. USDC is not mined, that means it is not created by solving very complicated algorithmic calculations. In fact this product is issued on demand. Anyone who buys USDC from Coinbase will have new ones delivered and never released. The doubt in this case is that Coinbase, as well as the other agents involved in the project, can issue more money than they will actually be able to convert one day. This problem can be overcome, provided that the exchange actually has US dollars or equivalent in cash. > > > # Where to store it? > > The best hot wallets for USD Coin are Coinbase Wallet, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. Solid backers > > 2. Useful > > 3. Future projects > > **Cons** > > 4. High competition ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

CointestMod

#USDC Con-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is USD coin (USDC)?** > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > Uses of USD coin: > • Avoid inflation in countries with weak economies > • Send money around the world without large fees, securely and instantly > • Short other coins without having to convert to fiat > • Buys things in crypto based apps and websites > > > **Cons of USD coin** : > • Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount > > • Although USD coin can be use in some DeFi apps and games, there are very few day-to-day uses for USDC – there is almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability > > • Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger > > • Another issue that may put people off from USD coin is that it is centralised – it is governed by Circle, so it the reserves cannot be verified, unlike decentralised options like DAI and SameUSD > > • Although transferrin USD coin is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less > > • Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal > > \*”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself\* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by I-play-too-much-PUBG which won 3rd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > USDC is the best stablecoin and here is why. > > > > > > > 1. USDC is transparent. Nothing is hidden in USDC due to its publicly verifiable attestations. This means it is much harder for criminal activity such as money laundering to occur. > > > > > 2. USDC is safe. USDC is backed by (debatably) the strongest economy in the world unlike some other stablecoins such as BUSD or DAI. USDC is only truly comparable to other US dollar backed coins such as USDT. > > > > > With that argument someone might say that USDT is also backed by the US dollar. With that, I follow with another argument. > > > > > 3. Due to the transparency and security of USDC, there is little to no “fairy money” or creation of cryptocurrency without being backed by anything. This is the strongest reason why USDC is superior to USDT. > > > > > > > 4. Although USDC is backed by the US dollar (centralized) it actually supports defi. USDC is an ERC-20 based token therefore it can be used by any dApp built on the ethereum network. > > > > > > In conclusion, USDT is currently used more and has a higher market cap than USDC, but USDC has stronger infrastructure and is more likely to be used largely in the future due to it being in support of defi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

Harmz1229

You as well. Transferred a lot to USDC bought a couple axies life is good. Now I should be pretty well set up whatever the market decides to do

bitjava

No. Selling (trading) one asset for another is what defines a taxable event (whether it’s BTC for USD, USD for BTC, or BTC for USDC, doesn’t matter). You can move your crypto off the exchange to your wallet, to and fro and back again and there is no taxable event.

Rise_Relevant

Love the hipocracy. Refuses to support regulation of the space in any rational way and then blames the industry. Meanwhile, Black Rock is allowed to take down Tether and then back Circle to peg USDC to their own holdings

CointestMod

#USDC Con-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2nfy/comment/hewkfxw/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: *no edits yet* > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. \[1\], \[2\], \[3\] > > # Cons > > **It’s centralized** > > Decentralization is one of the core principles of crypto industry. USDC is centralized. Centre (nomen omen), the consortium that is responsible for USDC, can freeze anyone’s USDC assets whenever they want to. In 2020, they blacklisted an address and froze $100,000 in USDC in response to a request from law enforcement \[4\]. In this case, the freezing of assets was the right thing to do but nothing stops Centre from freezing assets in more controversial circumstances. > > ​ > > **It has fewer trading pairs and blockchains than tether** > > USDC announced in June 2021 that it wants to expand to 10 more blockchains in the near future \[5\]. But as of now, it’s present on 5 blockchains (Ethereum, Algorand, Solana, Stellar and Tron) whereas USDT, its main competitor, is available on 8 blockchains. \[6\] > > USDC is even more pale in comparison to USDT when it comes to the number of available trading pairs. There are barely any coins that aren’t paired with USDT, when USDC usually allows to buy only the most popular coins. > > ​ > > **Is it really that transparent?** > > Circle claimed in the past that all USD Coins are backed 1:1 against US dollar (cash). This is not the case anymore. And while people praise USDC for being more transparent than Tether and having better, more reliable reserve composition, just until recently Tether was completely nontransparent and lied about its reserves, so it’s hard to look bad when compared to Tether. > > Circle isn’t in fact that transparent. For example, they don’t disclose too much information about funds referred to as “approved investments”. **We don’t know how risky those investments are.** USDC has licenses in most of the states in the US. Some of those states have absolutely no restrictions and if Circle operates under the license from one of those states, it can invest in anything it wants. \[7\] > > Also, if you compare USDC’s breakdowns to e.g. breakdowns of banks or other financial institutions, it’s clear that **there’s room for much more transparency**. Take a look at e.g. JP Morgan’s breakdown: [https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio](https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio) > > This breakdown includes a lot of more details. You can check the issuer, market value, CUSIP number, effective maturity and so on **for each asset**. This kind of information is absent in USDC’s breakdowns. > > ​ > > **There are more transparent stablecoins and stablecoins that are fully backed by cash** > > There are other stablecoins which are transparent and release independent, monthly audit reports about their backing. But what is more important – **there are stablecoins that are fully backed by cash**. Gemini USD (GUSD) or TrueUSD (TUSD) are two examples. \[8\] > > Also, Tether is often criticized for being a very small company with very few employees and yet managing billions in assets. However, **Center had only one employee** since December 2020 to March 2021 – its CEO. Currently, it hires 6 people. \[9\] > > ​ > > **Regulatory risk** > > Recently, regulatory activities have been accelerating. Gary Gensler, the head of the Security and Exchanges Commission (SEC) has asked for more authority to regulate cryptocurrency with the focus on stablecoins. > > Moreover, Fed Chairman Jerome Powell has said that a U.S. **central bank digital currency could eliminate the need for stablecoins like USDC**. And since USDC is a centralized stablecoin, a regulatory crackdown and a US CBDC could drive out USDC. > > **\_\_\_\_\_\_\_\_\_\_** > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/)](https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/) > > ^(\[5\]) [^(https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms)](https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms) > > ^(\[6\]) [^(https://www.circle.com/en/multichain-usdc)](https://www.circle.com/en/multichain-usdc) > > ^(\[7\] htps://assets.ctfassets.net/jg6lo9a2ukvr/3U43d7lUPmunUNLa0f9xui/24e439e3040c92179245485ebd1b5ba1/Gemini\\Dollar\_Examination\_Report\_08-31-21.pdf) > > ^(\[8\]) [^(https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/)](https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/) > > ^(\[9\]) [^(https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/)](https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10ldwad/daily_general_discussion_january_26_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by I-play-too-much-PUBG which won 3rd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > USDC is the best stablecoin and here is why. > > > > > > > 1. USDC is transparent. Nothing is hidden in USDC due to its publicly verifiable attestations. This means it is much harder for criminal activity such as money laundering to occur. > > > > > 2. USDC is safe. USDC is backed by (debatably) the strongest economy in the world unlike some other stablecoins such as BUSD or DAI. USDC is only truly comparable to other US dollar backed coins such as USDT. > > > > > With that argument someone might say that USDT is also backed by the US dollar. With that, I follow with another argument. > > > > > 3. Due to the transparency and security of USDC, there is little to no “fairy money” or creation of cryptocurrency without being backed by anything. This is the strongest reason why USDC is superior to USDT. > > > > > > > 4. Although USDC is backed by the US dollar (centralized) it actually supports defi. USDC is an ERC-20 based token therefore it can be used by any dApp built on the ethereum network. > > > > > > In conclusion, USDT is currently used more and has a higher market cap than USDC, but USDC has stronger infrastructure and is more likely to be used largely in the future due to it being in support of defi. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

Edgenomancer

I joined the market at a shaky time is now even decent experience managing these coins or should I sit on USDC or Doge?

CointestMod

#USDC Con-Arguments Below is an argument written by madpanda94 which won 3rd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > My analysis comes from a post from 1 month ago written by me [https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto\_8\_september\_8\_2021\_usd\_coin\_usdc/](https://www.reddit.com/r/CryptoCurrency/comments/pkita5/knowyourcrypto_8_september_8_2021_usd_coin_usdc/) > > # What is it? > > USD Coin is a stable coin, which is a cryptocurrency that has the same value as a classic currency, in this case the US dollar. It is a similar project, in several ways, to other stable coins. It is also the stable coin managed directly by the Coinbase and Coinbase PRO exchanges, one of the most important exchanges in the world. USD Coin, as it should be more than clear from the name, is pegged to the dollar. What does this mean? It means that the value of a USDC token will always be equal to the value of one dollar. We will always be able to convert (we will see the special cases later) a token of this type into dollars. As we can then see on the main markets that change it, the price can fluctuate very slightly with respect to that of the dollar, generally in the order of thousandths of a percentage. These are very small variations that are mostly dependent on the small inefficiencies that can be created on the market. Perhaps one of the best qualities of USDC is that it is controlled by a consortium, in which partecipate several players in the cryptocurrency industry. It was in fact founded by Circle, and today also hosts the popular Coinbase exchange, and the mining company Bitmain, which is one of the largest investors in Circle. An internal project? No. A project that today has behind it the most serious groups circulating in the world of cryptocurrencies. > > > # How does it work? > > Like all stable coins, USD Coin also has as its main use to act as a counter value on high-frequency exchanges, obviously being tokenized. Therefore, its first use is to act as a counterparty in the negotiations that take place within the main exchanges. Coinbase aims to use it as a means of payment, offering free wallets and above all the possibility for everyone to exchange a crypto with a stable value expressed in dollars without the delays and costs that are instead connected to classic banking. USD Coin is a ERC-20 token, which is a token that is compatible with the Ethereum blockchain. A choice of this type has proved to be a winning one over time because the Ethereum network today offers reliability and allows this stable token, USDC, to be used in many decentralized finance projects. USDC is not mined, that means it is not created by solving very complicated algorithmic calculations. In fact this product is issued on demand. Anyone who buys USDC from Coinbase will have new ones delivered and never released. The doubt in this case is that Coinbase, as well as the other agents involved in the project, can issue more money than they will actually be able to convert one day. This problem can be overcome, provided that the exchange actually has US dollars or equivalent in cash. > > > # Where to store it? > > The best hot wallets for USD Coin are Coinbase Wallet, TrustWallet and Atomic Wallet. If you want more security, a cold storage like Ledger or Trezor is the right choice. > > > # Pros&Cons > > \*DISCLAIMER\* These lists are subjective, it depends from person to person > > **Pros** > > > 1. Solid backers > > 2. Useful > > 3. Future projects > > **Cons** > > 4. High competition ***** Would you like to learn more? [Click here](/r/CryptoCurrency/comments/pz48y3/rcc_cointest_top_10_usd_coin_conarguments_october/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10kkgfg/daily_general_discussion_january_25_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

CointestMod

#CBDC Con-Arguments Below is an argument written by noxtrifle which won 1st place in the CBDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > CBDCs are not much different from cryptocurrencies, and are digital, governmentally-issued tokens that are pegged to the value of the specific currency. Think of them like USDT or USDC, but highly regulated and centralized. This is why CBDCs have several flaws, including: > > * **Possible ban of cryptocurrencies** > * As a country implements its own CBDC, it is possible that they will simultaneously ban cryptocurrencies as an alternative means of payment, meaning that residents may be locked into using the CBDC, and nothing else. > * **Lack of privacy** > * CBDCs are fully trackable (and controllable) by the country's government, which raises concerns for users' privacy and financial autonomy. If a more authoritarian government was involved, the chances exist that the government uses citizens' personal data for malicious purposes. Even the notion that their transactions are directly trackable by the government may deter many from using CBDCs at all, diminishing their practicality if not all will use it. > * The UK's [House of Lords](https://www.omfif.org/2022/01/uk-parliament-reluctant-to-embrace-retail-cbdc/) and [US Senators](https://www.cruz.senate.gov/newsroom/press-releases/sen-cruz-introduces-legislation-prohibiting-unilateral-fed-control-of-a-us-digital-currency) Chuck Grassley, Ted Cruz, and Mike Braun also see privacy as a major concern for CBDCs, even though both countries do not have any definite, immediate plans to launch a CBDC. > * This could also give birth to a system where governments can restrict individuals' or companies' access to the monetary system for any dissent against the government, and combining CBDCs with something like China's social credit system would worsen the already-severe privacy issues in certain countries. > * **Centralisation** > * As opposed to cryptocurrencies, which in most cases are decentralized, CBDCs in their current form are fully controlled by the government or central bank. > * Without decentralization, CBDCs bring back into question many of the problems that cryptocurrencies seek to solve: including double-spending, hackers, and malicious actors. > * Data breaches are also a severe issue: unlike in the cryptocurrency space where a hacker can only gain access to one's funds, with CBDCs they can steal numerous other sensitive details including one's bank details, address, and identity as they will all likely be linked to one's CBDC account. > * **Monetary Policy Concerns** > * While CBDCs will allow governments to collect taxes and track expenditure with ease, they are also a dangerous tool in times of economic concern. > * Take the present day, for instance. Instead of raising the cash rate to decrease expenditure, governments could easily diminish citizens' accounts by a certain amount or vice versa, likely leading to rapid deflation or inflation. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/v2jl0x/general_concepts_cbdc_conarguments_june_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_CBDC) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10kkgfg/daily_general_discussion_january_25_2023_gmt0/).

CointestMod

#USDC Con-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > **What is USD coin (USDC)?** > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > Uses of USD coin: > • Avoid inflation in countries with weak economies > • Send money around the world without large fees, securely and instantly > • Short other coins without having to convert to fiat > • Buys things in crypto based apps and websites > > > **Cons of USD coin** : > • Although the cost of transferring USD coin may be less than if it were fiat, when the Ethereum network is congested it can get very expensive to transfer even a small amount > > • Although USD coin can be use in some DeFi apps and games, there are very few day-to-day uses for USDC – there is almost no shops, restaurants or companies that will accept it in everyday circumstances, reducing its usability > > • Staking USDC can be risky compared to holding fiat in a bank – banks have FDIC insurance and your money is almost guaranteed to be safe, albeit with a lower interest rate, but there are many examples of DeFi apps that have been hacked with funds drained so your money is in more danger > > • Another issue that may put people off from USD coin is that it is centralised – it is governed by Circle, so it the reserves cannot be verified, unlike decentralised options like DAI and SameUSD > > • Although transferrin USD coin is very fast, certain fiat services -most notably PayPal – have even shorter transfer times, sometimes 1 second or less > > • Even though crypto is getting more mainstream with simpler apps, it can be difficult for many to understand how to use and stake this coin to achieve its full potential, and if it is held in private wallets and the seed key is forgotten there is nothing anyone can do to retrieve the funds, unlike apps like PayPal > > \*”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself\* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10kkgfg/daily_general_discussion_january_25_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2jo1/comment/hewg10a/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: 31.03.2021 > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. ^(\[1\], \[2\], \[3\]) > > # Pros > > **It’s backed mostly by cash and cash equivalents** > > It must be admitted that Tether has improved its reserves a lot since their first report and their latest breakdown looks much better as USDT is now backed by cash and cash equivalents in around 85%, but USDC is still ahead as its **reserves are backed by cash and cash equivalents in 92%**. There are also many more questions in regards to the credibility of Tether’s reports. ^(\[4\], \[5\]) And USDC may soon leave Tether far behind as Circle, the company that issues and backs USDC, stated that it wants the reserves to consist only of cash, cash equivalents and U.S. Treasury bonds in the near future. ^(\[6\]) > > What the stablecoin reserves consist of is extremely important for liquidity. If a lot of people decided to cash out at the same time and there was no liquidity it could end in a disaster for the whole market. > > ​ > > **It’s partnered with Coinbase, Visa and others** > > Circle has partnered with Coinbase and together they founded a consortium named Centre that governs USDC. Circle has also partnered with banking institutions, including Signature Bank and Visa. The companies that invested in Circle include **Goldman Sachs**, Digital Currency Group (**Grayscale** Investments), **Fidelity** and **FTX**. > > It is also worth mentioning that Circle wants to follow in the footsteps of their partners (Coinbase) and also become a publicly traded company, which would add even more credibility to USDC. ^(\[7\]) > > ​ > > **It’s transparent** > > USDC is transparent in terms of its financial operations. It follows the US laws closely. It is also **audited by Grant Thornton, LLP every month** and monthly reports can be found on the [Centre Consortium’s website](https://www.centre.io/usdc-transparency). The reports, of course, include information on USDC reserves. > > ​ > > **It’s growing rapidly** > > At the beginning of the year, USDT had a 5 times bigger market cap than USDC ($20B vs. $4B). In March2021, this difference is much smaller and USDC has almsot 2/3 of the USDT's amrket cap. One can argue that this difference is still significant but be aware that **between April 2021 and April 2022 market cap of USDC grew by 400% while Tether’s market cap grew by 100%.** > > Also, while USDT’s daily volume decreased, USDC’s volume is on a rise. > > ​ > > **Coinsmart replaces Tether with USDC** > > On September 15, 2021, Coinsmart, Canadian cryptocurrency exchange, delisted USDT and adopted USDC instead ^(\[8\]). As regulators take a closer look at stablecoins, this trend might continue and **more entities might drop Tether in favor of a more transparent stablecoins.** > > ​ > > **USDC is centralized. But is it so bad in the case of a stablecoin?** > > Those who criticize USDC and other centralized stablecoins often give the example of DAI which in their opinion is decentralized. There is no question about USDC being dependent on Centre, but it must be said that DAI, on the other hand, is heavily dependent on USDC - more than half of DAI is generated by USDC collateral and collateralizetion against Centre’s stablecoin is more than 25%. ^(\[10\]) > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So, is decentralization that important in the case of a stablecoin anyway? > > \_\_\_\_\_\_\_\_\_\_\_ > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en)](https://www.centre.io/hubfs/pdfs/attestation/2021%20Circle%20Examination%20Report%20August%202021%20Final.pdf?hsLang=en) > > ^(\[5\]) [^(https://tether.to/wp-content/uploads/2021/08/tether\\assuranceconsolidated\_reserves\_report\_2021-06-30.pdf)](https://tether.to/wp-content/uploads/2021/08/tether\assuranceconsolidated_reserves_report_2021-06-30.pdf) > > ^(\[6\]) [^(https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html)](https://www.cnbc.com/2021/08/23/crypto-usdc-stablecoin-to-change-reserves-composition.html) > > ^(\[7\]) [^(https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/)](https://fortune.com/2021/05/28/crypto-startup-circle-fidelity-ftx-stablecoin-usdc-coinbase-funding-spac/) > > ^(\[8\]) [^(https://nitter.net/CoinSmart/status/1433472681626722309)](https://twitter.com/CoinSmart/status/1433472681626722309) > > ^(\[9\]) [^(https://www.coinsmart.com/blog/what-is-usdc/)](https://www.coinsmart.com/blog/what-is-usdc/) > > ^(\[10\]) [^(https://daistats.com/#/)](https://daistats.com/#/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.

superberde

Coinbase Card Rewards - through February 14, 2023 (US customers): • 4% XLM • 1% BTC, ETH, MATIC, USDC

marsangelo

You can have this Flare thing but your BTC ETH and USDC are ours

robeewankenobee

Check yesterday's Coinbureau upload about USDC spread ... some interesting points he made.

CointestMod

#USDC Con-Arguments Below is an argument written by Blendzi0r which won 1st place in the USDC Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > First published on: [30.09.2021](https://www.reddit.com/r/CryptoCurrency/comments/og2nfy/comment/hewkfxw/?utm_source=share&utm_medium=web2x&context=3) > > Last edited on: *no edits yet* > > # Intro > > USD Coin (USDC) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDC is currently the second largest stablecoin. \[1\], \[2\], \[3\] > > # Cons > > **It’s centralized** > > Decentralization is one of the core principles of crypto industry. USDC is centralized. Centre (nomen omen), the consortium that is responsible for USDC, can freeze anyone’s USDC assets whenever they want to. In 2020, they blacklisted an address and froze $100,000 in USDC in response to a request from law enforcement \[4\]. In this case, the freezing of assets was the right thing to do but nothing stops Centre from freezing assets in more controversial circumstances. > > ​ > > **It has fewer trading pairs and blockchains than tether** > > USDC announced in June 2021 that it wants to expand to 10 more blockchains in the near future \[5\]. But as of now, it’s present on 5 blockchains (Ethereum, Algorand, Solana, Stellar and Tron) whereas USDT, its main competitor, is available on 8 blockchains. \[6\] > > USDC is even more pale in comparison to USDT when it comes to the number of available trading pairs. There are barely any coins that aren’t paired with USDT, when USDC usually allows to buy only the most popular coins. > > ​ > > **Is it really that transparent?** > > Circle claimed in the past that all USD Coins are backed 1:1 against US dollar (cash). This is not the case anymore. And while people praise USDC for being more transparent than Tether and having better, more reliable reserve composition, just until recently Tether was completely nontransparent and lied about its reserves, so it’s hard to look bad when compared to Tether. > > Circle isn’t in fact that transparent. For example, they don’t disclose too much information about funds referred to as “approved investments”. **We don’t know how risky those investments are.** USDC has licenses in most of the states in the US. Some of those states have absolutely no restrictions and if Circle operates under the license from one of those states, it can invest in anything it wants. \[7\] > > Also, if you compare USDC’s breakdowns to e.g. breakdowns of banks or other financial institutions, it’s clear that **there’s room for much more transparency**. Take a look at e.g. JP Morgan’s breakdown: [https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio](https://am.jpmorgan.com/us/en/asset-management/adv/products/jpmorgan-prime-money-market-fund-morgan-4812a2702#/portfolio) > > This breakdown includes a lot of more details. You can check the issuer, market value, CUSIP number, effective maturity and so on **for each asset**. This kind of information is absent in USDC’s breakdowns. > > ​ > > **There are more transparent stablecoins and stablecoins that are fully backed by cash** > > There are other stablecoins which are transparent and release independent, monthly audit reports about their backing. But what is more important – **there are stablecoins that are fully backed by cash**. Gemini USD (GUSD) or TrueUSD (TUSD) are two examples. \[8\] > > Also, Tether is often criticized for being a very small company with very few employees and yet managing billions in assets. However, **Center had only one employee** since December 2020 to March 2021 – its CEO. Currently, it hires 6 people. \[9\] > > ​ > > **Regulatory risk** > > Recently, regulatory activities have been accelerating. Gary Gensler, the head of the Security and Exchanges Commission (SEC) has asked for more authority to regulate cryptocurrency with the focus on stablecoins. > > Moreover, Fed Chairman Jerome Powell has said that a U.S. **central bank digital currency could eliminate the need for stablecoins like USDC**. And since USDC is a centralized stablecoin, a regulatory crackdown and a US CBDC could drive out USDC. > > **\_\_\_\_\_\_\_\_\_\_** > > **^(Sources:)** > > ^(\[1\]) [^(https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf)](https://f.hubspotusercontent30.net/hubfs/9304636/PDF/centre-whitepaper.pdf) > > ^(\[2\]) [^(https://en.wikipedia.org/wiki/USD\\Coin)](https://en.wikipedia.org/wiki/USD\Coin) > > ^(\[3\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[4\]) [^(https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/)](https://www.coindesk.com/markets/2020/07/08/circle-confirms-freezing-100k-in-usdc-at-law-enforcements-request/) > > ^(\[5\]) [^(https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms)](https://www.centre.io/blog/announcing-usdc-on-ten-new-blockchain-platforms) > > ^(\[6\]) [^(https://www.circle.com/en/multichain-usdc)](https://www.circle.com/en/multichain-usdc) > > ^(\[7\] htps://assets.ctfassets.net/jg6lo9a2ukvr/3U43d7lUPmunUNLa0f9xui/24e439e3040c92179245485ebd1b5ba1/Gemini\\Dollar\_Examination\_Report\_08-31-21.pdf) > > ^(\[8\]) [^(https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/)](https://www.coindesk.com/markets/2021/07/06/circle-isnt-winning-the-stablecoin-transparency-race/) > > ^(\[9\]) [^(https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/)](https://www.coindesk.com/business/2021/08/30/centre-consortium-hires-six-employees-including-former-circle-robinhood-executives/) ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2moj/top_10_usd_coin_conarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/10kkgfg/daily_general_discussion_january_25_2023_gmt0/).

CointestMod

#USDC Pro-Arguments Below is an argument written by ExchangeEnough7821 which won 2nd place in the USDC Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > What is USD coin? > > USD coin is a stablecoin, first announced in May 2018. It is developed by the Circle Consortium - a partnership between the company Circle and the exchange Coinbase. Circle and Coinbase are responsible for issuing the USD coin, and Centre develops the technology behind and the framework of it. Circle is a company founded in 2013 by Jeremy Allaire and Sean Neville, and is an official Money Transmitter – it must comply with federal law and regulations. Now, it has over 60 partners and is continuing to expand. > > Uses of USD coin: > > • Avoid inflation in countries with weak economies > > • Send money around the world without large fees, securely and instantly > > • Short other coins without having to convert to fiat > > • Buys things in crypto based apps and websites > > Pros of USD coin: > > • USD coin has many high value and reliable partneships with large firms, that gives the project stability and credibility. These include Goldman Sachs, Bitmain and IDG Capital, and these high profile links mean USD coin can be seen as trustworthy > > • Transfers with USD coin only take roughly 15 seconds, compared to the minutes it takes for a fiat wire transfer or similar – this means it has a use case in transferring money across the globe quickly > > • The cost of money transfers remains the same no matter the size – it is the Ethereum gas fee-, and this means for high value transfers it can be cheaper than other fiat versions, which may take a percentage > > • Compared to the US Dollar, you can earn a much higher interest on the coin with decentralised apps, so is more profitable when holding than fiat currency. > > • It is backed 1 to 1 with the US dollar – one of the strongest and most reliable currencies in the world, so is also a very reliable stablecoin. > > • USD coin can be used by those who don’t have access to traditional bank account due to age or location, so can still cash out other coins into an exchange > > *”What is USD coin” and “Uses of USD coin” is copied between both of my USD pros, and USD cons, but I wrote it myself* ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/ru2mln/top_10_usd_coin_proarguments_january_2022/) to be taken to the original topic-thread or you can scan through the [Cointest Archive](/r/CointestOfficial/wiki/cointest_archive#wiki_USD_Coin) to find arguments on this topic in other rounds.

CointestMod

USDC {{pros}} & {{cons}} and related info are in the collapsed comments below. Pros and cons will change for every new post.